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India Equity Research Reports, IPO and Stock News
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India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Nifty dropped 0.83% on Monday to extend the decline that began at 5100. The index opened with a gap down tracing the weak trend across Asian indices as well as the panic sell-off in late Friday’s session and went below the 4600 level. With an intermediate support of 4540 in sight the markets started to recover from noon and finally closed the day above 4600. On the daily chart a small bodied ‘hammer’ candlestick pattern is formed indicating demand at lower levels. The ‘head & shoulder’ pattern on closing chart continues to be in play for a target of 4400 and we continue to prefer the near-term bearish pattern. Various momentum oscillators that have gone into sell mode are gaining strength with each session. Market internals indicate a relatively lower turnover but an adverse market breadth of 1:4.6 suggestive of a broad-based rout. The outlook for near-term continues to be bearish, however with yesterday’s price action the index can attempt to test the hourly resistances at 4675 before finally turning lower. Traders can look to add short positions of initiate fresh on rallies. The bearish stance will get negated on a break above 4720.
Among the sectoral performances buying interest was seen in Oil & Gas (+0.96%), FMCG (+0.61%) and Auto (+0.22%) indices. On the losing side were Cap Goods (-3.48%), Banking (-3%) and Realty (-2.89%) indices. The Mid-cap and Small-cap indices grossly underperformed their frontline peers as they ended lower by 2% and 2.50% respectively.
Bullish Setups: DRRD, PIHC, DITV
Bearish Setups: HCLT, LPC, RBXY, AXSB
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